Risk Assessment and Allocation for Highway Construction Management

Appendix B Risk Identification Checklists

1. DOE Office of Engineering and Construction Management Risk Document Checklist

Risk management reports vary depending on the size, nature, and phase of the project. The following are examples of risk management documents and reports that may be useful:

• Risk management plan
• Risk information form
• Risk assessment report
• Risk handling priority list
• Risk handling plan of action
• Aggregated risk list
• Risk monitoring documentation:
  • Project metrics
  • Technical reports
  • Earned value reports
  • Watch list
  • Schedule performance report
  • Critical risk processes reports

2. Caltrans Sample Risk List.

Technical Risks

• Design incomplete
• Right-of-way analysis in error
• Environmental analysis incomplete or in error
• Unexpected geotechnical issues
• Change requests because of errors
• Inaccurate assumptions on technical issues in planning stage
• Surveys late and/or surveys in error
• Materials/geotechnical/foundation in error
• Structural designs incomplete or in error
• Hazardous waste site analysis incomplete or in error
• Need for design exceptions
• Consultant design not up to department standards
• Context-sensitive solutions
• Fact sheet requirements (exceptions to standards)

External Risks

• Landowners unwilling to sell
• Priorities change on existing program
• Inconsistent cost, time, scope, and quality objectives
• Local communities pose objections
• Funding changes for fiscal year
• Political factors change
• Stakeholders request late changes
• New stakeholders emerge and demand new work
• Influential stakeholders request additional needs to serve their own commercial purposes
• Threat of lawsuits
• Stakeholders choose time and/or cost over quality

Environmental Risks

• Permits or agency actions delayed or take longer than expected
• New information required for permits
• Environmental regulations change
• Water quality regulation changes
• Reviewing agency requires higher-level review than assumed
• Lack of specialized staff (biology, anthropology, archeology, etc.)
• Historic site, endangered species, or wetlands present
• Environmental impact statement (EIS) required
• Controversy on environmental grounds expected
• Environmental analysis on new alignments required
• Formal National Environmental Policy Act (NEPA) 404 consultation required
• Formal Section 7 consultation required
• Section 106 issues expected
• Project in an area of high sensitivity for paleontology
• Section 4(f) resources affected
• Project in the Coastal Zone
• Project on a Scenic Highway
• Project near a Wild and Scenic River
• Project in a floodplain or a regulatory floodway
• Project does not conform to the State implementation plan for air quality at the program and plan level
• Water quality issues
• Negative community impacts expected
• Hazardous waste preliminary site investigation required
• Growth inducement issues
• Cumulative impact issues
• Pressure to compress the environmental schedule

Organizational Risks

• Inexperienced staff assigned
• Losing critical staff at crucial point of the project
• Insufficient time to plan
• Unanticipated project manager workload
• Internal red tape causes delay getting approvals, decisions
• Functional units not available or overloaded
• Lack of understanding of complex internal funding procedures
• Not enough time to plan
• Priorities change on existing program
• New priority project inserted into program
• Inconsistent cost, time, scope, and quality objectives Project Management Risks
• Project purpose and need are poorly defined
• Project scope definition is poor or incomplete
• Project scope, schedule, objectives, cost, and deliverables are not clearly defined or understood
• No control over staff priorities
• Too many projects
• Consultant or contractor delays
• Estimating and/or scheduling errors
• Unplanned work that must be accommodated
• Communication breakdown with project team
• Pressure to deliver project on an accelerated schedule
• Lack of coordination/communication
• Lack of upper management support
• Change in key staffing throughout the project
• Inexperienced workforce/inadequate staff/resource availability
• Local agency issues
• Public awareness/support
• Agreements

Right-of-Way Risks

• Utility relocation may not happen in time
• Freeway agreements
• Railroad involvement
• Objections to right-of-way appraisal take more time and/or money

Construction Risks

• Inaccurate contract time estimates
• Permit work windows
• Utility
• Surveys
• Buried manmade objects/unidentified hazardous waste

Regulatory Risks

• Water quality regulations change
• New permits or new information required
• Reviewing agency requires higher-level review than assumed

3. American Consulting Engineers Council and Associated General Contractors of America Checklist

• Adequacy of project funding
• Subsurface conditions-rock, soils, water levels, hazardous wastes, archaeological encounters, existing utilities
• Adequacy of labor force
• Political climate and interference, community activism
• Adequacy and availability of owner representation
• Permits and licenses
• Site access
• Sufficiency of plans and specifications
• Innovative designs
• Owner involvement in design
• Appropriate designer involvement in construction
• Late or unsuitable owner-furnished material and equipment
• Delayed deliveries
• Delay in presenting problems
• Delay in addressing and solving problems
• Labor productivity
• Subcontractor capability
• Delays and disruptions
• Worker and site safety
• Adequacy of performance time
• Changes in needs or requirements of finished project
• Governmental acts
• Acts of God
• Union strife and work rules
• Cost escalation
• Overlapping insurance coverage
• Unreasonable systems performance guarantees

4. Washington State DOT 2002 Urban Corridors Study Common Risks

Economic

• Market conditions
• Labor disruptions

Environmental

• Storm water treatment and/or quantities
• Changes in permitting
• Offsite and onsite wetlands
• Environmental impact statement (EIS)
• National Environmental Policy Act (NEPA) 404 merger process

Third Party

• Utility issues
• Rail lines (regular and light)

Right-of-Way

• Acquisition problems
• Value and impact

WSDOT Management

• WSDOT program management

Geotechnical

• Geotechnical conditions

Design Process

• Change in seismic criteria
• Bridge foundations
• Local arterial improvements and access
• Inadequate design/design uncertainty for interchanges
• Traffic demand

Construction

• Contaminated soil
• Natural hazards
• Work window
• Auxiliary lanes
• Staging areas

Other Risks

• Minor risks